Information on the Target
Multiverse Computing, headquartered in Donostia, Spain, is a pioneering company specializing in quantum-inspired AI model compression. The firm has successfully developed CompactifAI, a cutting-edge compression technology that allows for the reduction of Large Language Models (LLMs) by up to 95% without compromising their performance. During 2024, Multiverse worked on advancing this technology and began rolling it out to initial customers, leading to a significant investment of €189 million ($215 million) announced on June 12, 2025.
Industry Overview in Spain
Spain has witnessed substantial growth in the AI and technology sectors, driven by both government initiatives and private sector innovation. The country aims to establish itself as a leader in AI, particularly as it pertains to digital transformation across various industries. The burgeoning AI landscape is characterized by an increasing demand for efficient model compression technologies that meet both speed and accuracy requirements, critical for improving operational costs and accessibility.
As Spanish enterprises increasingly adopt AI solutions, the need for effective model management and optimization becomes apparent. This has led to heightened interest in technologies that can alleviate the computational strain and high costs associated with cloud-based LLMs. Traditional approaches to model compression often fall short, highlighting an urgent requirement for more advanced solutions.
The Spanish government supports these technological advancements through initiatives like the Recovery, Transformation, and Resilience Plan that aims to accelerate the adoption of transformative digital technologies. Investments in promising AI startups like Multiverse Computing are seen as integral to drive European sovereignty in advanced technologies.
Furthermore, the broader European market is positioning itself to capture larger shares of the global AI industry, anticipated to reach $106 billion, as efficiency becomes paramount in AI deployment. Innovations in AI compression technology, such as CompactifAI, are crucial in facilitating this growth.
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The Rationale Behind the Deal
The Series B funding, led by Bullhound Capital, includes a diverse array of prestigious investors, including HP Tech Ventures and Santander Climate VC. This investment round seeks to accelerate the adoption of CompactifAI and address the prohibitive costs associated with LLM deployment. By reducing the size and complexity of LLMs, Multiverse opens the door for a broader range of businesses to leverage AI technologies, making advanced applications accessible to many.
Investors are optimistic about the potential of CompactifAI to revolutionize the AI inference market, as it promises improved efficiency and lower operational costs for companies looking to implement AI solutions. The backing from significant investors across sectors exemplifies confidence in Multiverse’s ability to transform the landscape of AI applications.
Information about the Investor
Bullhound Capital is the investment branch of GP Bullhound, a prominent investment management firm with more than €1 billion deployed since its inception in 2008. The firm specializes in supporting founders who are developing innovative technology companies across various sectors. Bullhound has a track record of investing in successful enterprises, including Spotify and Revolut.
By leading this investment in Multiverse Computing, Bullhound demonstrates its commitment to advancing category-defining technologies that can change market dynamics. With a global presence supported by a team of experienced professionals, Bullhound strives to partner with companies that are on the brink of achieving significant technological breakthroughs, particularly in the realm of artificial intelligence.
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The deal involving Multiverse Computing is seen as a strategic and timely investment in a rapidly evolving AI landscape. The innovative approach to model compression could significantly reduce costs and increase access to AI technologies in various industries. The ability of CompactifAI to achieve substantial compression without a loss of performance is a game-changer and positions Multiverse at the forefront of AI advancements.
Furthermore, the involvement of high-profile investors such as HP and Forgepoint Capital highlights the confidence in Multiverse’s direction and potential market impact. With a focus on reducing hardware requirements and enhancing the deployment of AI models, the investment is expected to yield significant returns as the demand for efficient AI solutions escalates.
Overall, as AI continues to permeate all facets of business, investments in innovative solutions like those offered by Multiverse Computing will likely be considered prudent by investors aiming to secure leading positions in this competitive market. Additionally, the collaborative ecosystem of investors possessing extensive industry experience and connections could further facilitate Multiverse’s growth trajectory.
In conclusion, the groundbreaking technology of Multiverse Computing not only addresses pressing industry demands but also aligns well with broader trends toward sustainable and efficient AI deployment, making it a compelling investment opportunity.
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Disclosed details
Transaction Size: $215M